The European Commission has warned against big tech: the Apple and Spotify battles on long-running tech empires, including the case of Dan Ek
The fine is far bigger than expected, prompting Apple’s stock to drop 3 percent on Monday. The media had reported a penalty of 500 million. It’s also one of the biggest fines the EU has ever issued against a tech company, ranking below only two Google fines of $5.1 billion and $2.4 billion. The company will be prevented from breaking rules in the future if the fine is large. She added that the amount includes a “lump sum” to “achieve deterrence.” $1.9 billion amounts to 0.5 percent of Apple’s global turnover, she said.
The Commission said it took into account the “duration and gravity of the infringement” when setting the fine, as well as Apple’s total turnover and market capitalization, while also factoring in “incorrect information” submitted by Apple during the administrative procedure.
Meanwhile, US courts have also ruled that Apple has to allow developers to link out to other payment methods as a result of a legal challenge from Fortnite developer Epic Games. When Apple allowed developers to link out, it maintained that it would take a cut of up to 27 percent from purchases, which was a reduction over its usual 30 percent rate. Apple critics said the changes showed that Apple would do everything in their power to protect their profits under their app store monopoly.
Daniel Ek is something of a reluctant figure in Europe’s fight against Apple, despite expressing disapproval of Apple’s business tactics. The self-proclaimed timid has become the voice of disgruntled European app developers who are finally feeling heard about their complaints about big tech.
The tech giant and streaming service had been at war in the past as Apple accused them of exploiting its dominance to stifle innovation. In their long-running conflict, each has made incursions into the other’s territory. Apple launched its own music service, Apple Music, in the fall of 2015, which was cheaper than other services because it didn’t have to pay the same App Store fees. In response to the challenge from Apple, the streaming service started an ambitious spending spree on high profile shows.